Noland on DPRK grain prices

According to the new Noland/Haggard blog:

The two panels below report data on prices for rice and corn. The charts indicate that prices have risen to roughly 35-40 percent of their pre-reform trend line, suggesting that excess growth in the money supply has undone a significant share of the reform. And grain price inflation has accelerated significantly, from an annual rate of 35-40 percent before the reform, to 500-600 percent over the past year.

Admittedly grain prices are rising worldwide, so the observed increase in grain prices may contain an element of relative price increase, but if food prices are interpreted as a proxy for the overall price level, these data suggest a rapidly growing money supply and accelerating inflation in North Korea.


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